Kirloskar Oil Engines shares rally 8% to 52-week high as Q3 profit soars 56% to ₹111 crore, dividend declared

This comes after the company reported its earnings for the third quarter of the 2025-26 financial year (Q3FY26) during post-market hours on Wednesday.

The stock was trading 4.87% higher at ₹1,389.10 per equity share as of 1:59 pm. It touched a year’s low of ₹544.40 apiece on February 28, 2025.

The share surged 16% in the past week and 23% over the month. On a year-to-date basis, it has gained 13%.

Kirloskar Oil Engines Q3 results

The Kirloskar Group company posted a 56.2% year-on-year (YoY) surge in its consolidated net profit to ₹111.4 crore for the October-December quarter of FY26, compared to ₹71.3 crore in the year-ago period.

Its revenue from operations stood at ₹1,872.6 crore for the reporting quarter, marking a 29.2% YoY jump from ₹1,449.3 crore in the third quarter of the 2024-25 fiscal year (Q3FY25).

Segment-wise, the firm posted a 35.93% YoY increase in its revenue from business-to-business (B2B) vertical at ₹1,396.15 crore, in comparison to ₹1,027.11 crore.

The revenue from its business-to-consumer (B2C) segment stood at ₹249.39 crore, up 18.42% YoY from ₹210.59 crore.

Furthermore, the company’s revenue from the financial services segment stood at ₹227.06 crore, reflecting a 7.3% YoY surge from ₹211.61 crore.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, grew 31.25% YoY to ₹331 crore in Q3FY26, as against ₹253 crore in the same period of FY25.

Its EBITDA margin expanded to 17.70% during the quarter under review, in comparison to 17.42% in the December FY25 quarter.

Board declares dividend

The Board of Directors of Kirloskar Oil Engines also declared an interim dividend of ₹2.50 per equity share with a face value of ₹2 each, at a 125% rate, for FY26.

The dividend will be paid through the National Electronic Clearing System (NECS) or any other electronic mode, on or before March 12, 2026.

It also fixed Friday, February 20, as the record date for the same.

What the management said

Commenting on the results, Gauri Kirloskar, Managing Director, Kirloskar Oil Engines, said: “KOEL has delivered its highest-ever third-quarter sales, driving record year-to-date performance. Growth was broad-based across segments, with 35% year-on-year growth for the quarter and 25% growth year-to-date, reflecting strong momentum across all businesses.”

She stated that during the quarter, the company completed the standalone B2C integration. The integration of the Fluid Dynamics business was a strategic milestone that enabled sharper segment focus while unlocking synergies across operations.

“At Arka, we are progressing well against our stated strategy of building a strong Retail Portfolio with a focus on Used Wheels and Small Ticket LAP to complement the existing SME and Wholesale book. In the past 9 months, we have opened 85 new branches and disbursed ₹328 crore in the Secured Retail lending division- testament of strong execution on the ground,” Kirloskar added.

With sustained strength in B28 and positive momentum in the Industrial segment, the firm is well positioned for the remainder of FY26, Kirloskar said, adding “Backed by a strong product pipeline and steady progress on our expansion plans, we remain confident in our long-term growth strategy and commitment to sustainable value creation.”

Kirloskar Oil Engines has a total market capitalisation of ₹20,200.89 crore, as of February 12, 2026, according to data on the NSE.